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Investing.com - Raymond (NSE:RYMD) James raised its price target on VitalHub (TSX:VHI) to C$14.50 from C$14.00 while maintaining an Outperform rating following the company’s acquisition of Novari Health.
VitalHub acquired Novari Health, a Canadian e-referral software provider, in what Raymond James describes as a highly strategic acquisition and VitalHub’s largest transaction to date. The firm notes that VitalHub secured the platform through a competitive process, explaining the relatively high acquisition multiple of 3.6x ARR.
Novari Health, which focuses on surgery referrals, waitlist management, and transitions to outpatient care, has a strong installed base in Canada. Raymond James expects that joining VitalHub will accelerate Novari’s international sales expansion, as Novari currently has no appreciable footprint in jurisdictions where VitalHub has established relationships and sales teams.
The acquisition provides strategic benefits by reducing VitalHub’s revenue concentration from the UK market, which Raymond James estimates would have approached 70% by the third quarter of 2025 but will now be approximately 60% following this transaction.
Raymond James highlighted that VitalHub’s two summer acquisitions have together boosted the company’s Annual Recurring Revenue (ARR) by 25%, strengthening the VitalHub ecosystem.
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